You are interested in purchasing a new car that costs $35,000. The dealership offers you a special financing rate of 6% APR (0.5% per month) for 48 months. Assuming that you do not make a down payment on the car and you take the dealer's financing deal, then your monthly car payments would be closest to:

Question

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula:Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))Plugging in the given values, we get:Monthly payment = (35000 * 0.005) / (1 - (1 + 0.005)^(-48))= 822.04Therefore, the closest answer choice is A) $822.

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